Follow Up

Expect Cat to Claw Higher

Shake-up at Caterpillar could position the shares for gains as the cycle turns.

October 22, 2016

Review | Preview | Follow Up: Russia

There are new reasons to dig Caterpillar shares. This past week, the company announced a new chief executive, effective on Jan. 1. And last month, the stock picked up a Buy recommendation—just the fourth among 23 analysts. It comes with a price target of $98, implying 13% upside. The dividend yield is 3.6%.

Outgoing chief Doug Oberhelman made one big mistake after taking over in 2010—or...